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Tower Group, Inc. Announces Renewal Rights Transaction

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^{Published in Business and Finance on Tuesday, November 2nd 2010 at 15:15 GMT by Market Wire}  

NEW YORK--([ BUSINESS WIRE ])--Tower Group, Inc. (NASDAQ: TWGP) announced today that it has acquired the renewal rights to the commercial automobile liability and physical damage business of AequiCap Program Administrators and its affiliate, TransPro Solutions, which are underwriting agencies under common ownership based in Fort Lauderdale, Florida. The business subject to the agreement covers both trucking and taxi risks that are consistent with Towera™s current underwriting guidelines.

The trucking component consists primarily of owner-operator and smaller fleet business written in four states, with Florida constituting in excess of 90% of the premium volume. The taxi component covers both owner-operator and fleet risks written in seventeen states. The two units together are expected to produce in excess of $50 million in premiums on an annual basis, of which approximately $20 million will be new business to Tower. In addition, a majority of the AequiCap employees involved in producing and servicing this commercial automobile business will become employees of Tower.

About Tower Group, Inc.

Tower Group, Inc. offers diversified property and casualty insurance products and services through its operating subsidiaries. Its insurance company subsidiaries offer insurance products to individuals and small to medium-sized businesses through its network of retail and wholesale agents and specialty business through program underwriting agents. Tower's insurance services subsidiaries provide underwriting, claims and reinsurance brokerage services to other insurance companies.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release and any other written or oral statements made by or on behalf of Tower may include forward-looking statements that reflect Tower's current views with respect to future events and financial performance. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "will," "plan," "expect," "project," "intend," "estimate," "anticipate," "believe" and "continue" or their negative or variations or similar terminology. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the actual results of Tower to differ materially from those indicated in these statements. Please refer to Towera™s filings with the SEC, including among others Towera™s Annual Report on Form 10-K for the year ended December 31, 2009 and subsequent filings on Form 10-Q, for a description of the important factors that could cause the actual results of Tower to differ materially from those indicated in these statements. Forward-looking statements speak only as of the date on which they are made, and Tower undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

For more information visit Tower's website at [ http://www.twrgrp.com/ ].